February 12, 1999

AGL Resources Inc.
303 Peachtree Street, N.E.
Atlanta, Georgia 30303

Dear Sirs/Madams:

At your request, we have read the description  included in your Quarterly Report
on Form 10-Q to the  Securities  and Exchange  Commission  for the quarter ended
December 31, 1998, of the facts relating to the change in accounting for natural
gas inventories  from first-in,  first-out to weighted average cost. We believe,
on the basis of the facts so set forth and other information  furnished to us by
appropriate  officials of AGL Resources Inc. (the Company),  that the accounting
change described in your Form 10-Q is an alternative  accounting  principle that
is preferable under the circumstances.

We have not audited any consolidated financial statements of the Company and its
subsidiaries as of any date or for any period  subsequent to September 30, 1998.
Therefore,  we are unable to express,  and we do not express,  an opinion on the
facts set forth in the  above-mentioned  Form 10-Q,  on the related  information
furnished  to us by  officials of the  Company,  or on the  financial  position,
results of  operations,  or cash flows of the  Company as of any date or for any
period subsequent to September 30, 1998.

Yours truly,

/s/ Deloitte & Touche LLP

Deloitte & Touche LLP
Atlanta, Georgia